Category Review – Travel
This Category Review for Travel provides guidance for core government departments on standards and targets for travel planning, video conferencing, air travel and motor vehicles.
Introduction
Transport is New Zealand's single largest energy consumer and is the fastest growing. Within New Zealand, transport accounts for over 43 per cent of all consumer energy use and it produces 46 per cent of the country's carbon dioxide emissions7.
Managing the environmental effects associated with the movement of goods and people in an organisation can have a wide range of positive effects, and has benefits not only for the organisation and staff, but also for the wider community.
This paper brings a number of themes together:
- Considering the demand for travel
- Reducing the need for workplace travel by examining alternatives eg, video-conferencing
- Where transport methods have to be used because there is no alternative, ensuring those chosen seek to reduce environmental impacts through informed decisions
- Where vehicles need to be procured, ensuring environmentally-efficient vehicles that are safe and fit for purpose are purchased.
Scope and aim of the review
The review takes into account environmental, economic and social impacts. It focuses on developing a workplace travel plan, the use of video-conferencing, air travel, and types and use of motor vehicles for both passengers and freight (cars purchased/leased/hired, taxis, buses, coaches, commercial vehicles).
To support this review, a Travel Category Review Team has been established that will on an ongoing basis:
- Work with relevant government departments to build on the work already done and identify minimum standards and targets (improving sustainability) for the category based on sustainability attributes or impacts. These standards and targets set the minimum requirements for all future procurements8 for the Travel Category
- Develop reference material (including guidance, tools and templates) to assist procurement practitioners in meeting these standards and targets, and to assist their departments in developing and achieving their carbon neutrality plan9 and meeting Govt3 commitments
- Encourage procurement practitioners to take a more holistic approach to procurement within this category, including working with their departments to develop the required measurement and reporting regimes
- Provide a continuous improvement programme, to review, validate and improve existing standards and develop related additional standards and targets together with associated reference material that will be introduced over time.
Workplace travel planning
Travel planning is included in this paper as an illustration of the wider interest of the travel category in the Govt3 programme. In this context it excludes the home to work commute.
A workplace travel plan is a general term for a package of measures tailored to the needs of an individual organisation and aimed at promoting travel choices with lower environmental impacts. Travel planning is seen as a necessary tool to help ensure the government's carbon neutral goals are achieved by 2012.
MANDATORY REQUIREMENTS
Workplace Travel Planning
- All Public Service departments must have a workplace travel plan in place by 2010 that aims for a 15 per cent reduction in kilometres travelled10. Departmental emissions reductions plans and actions must:
- Identify and pursue the most cost-effective and environmentally beneficial means of lowering emissions, measured over the whole of life of an intervention;
- Meet the particular needs and profile of each department ; and
- Not result in reduced departmental performance
- In order to meet the requirement (above) on travel plans, all new travel-related contracts (eg, including but not limited to: use of vehicles, taxis and air travel), must include the requirement that suppliers provide year-on-year reports on annual kilometres travelled.
Guidance
The following guidance notes have been developed to help government departments implement the standard and target for the Workplace Travel Planning:
- A workplace travel plan should look at behaviours and habits in the generation of demand, and whether these need to be addressed and changed. Examples of this are:
- Reducing workplace travel by using technology (see Video Conferencing later in this document)
- Considering alternative forms of transport, eg, public transport, in-house shuttle services, taxis, rental cars, cycling and walking
- Raising the awareness of individual drivers to drive more efficiently to reduce emissions and fuel consumption. Fuel$aver on the Land Transport NZ website has a useful calculator for identifying fuel consumption through driving habits.
- MfE will be providing a tool to enable departments to report on annual kilometres travelled, using information supplied by travel providers as part of their required reporting to departments.
- Land Transport NZ will have a workplace travel planning tool available towards the end of 2007.
Video conferencing
The purpose of the following Video Conferencing requirements is to encourage greater use of technology (eg, video conferencing) to reduce workplace travel.
TARGETS
Video Conferencing
Public Service departments are expected to:
- include consideration of video conferencing as part of an overall strategy in the Travel Plan to reduce workplace travel and enhance departments to connect through the use of technology
- engage with key management/stakeholders in the department in determining the best ‘fit for purpose' by specifying equipment of an appropriate technological standard to maximise the benefits of using video conferencing.
Guidance
The following guidance notes have been developed to help government departments meet the target for the Video Conferencing Category:
- As part of the procurement planning phase, consider the following:
- What is the business fit of video conferencing to your department? Is there existing key management/stakeholder buy-in?
- Do video conferencing facilities already exist within the organisation and if so, is full use being made of them? If not, are the facilities adequately publicised to raise staff awareness?
- Have staff been trained how to use the facility?
- Do staff know how to check availability or make a booking? Is it simple to do so?
- Could other departments in the same geographic location share existing video conferencing facilities?
- If planning to acquire video conferencing equipment, is there scope to look at a joint procurement or joint use with another department?
If video conferencing is an ‘untried' or ‘unfamiliar' technology in the department – or if lack of funding is an issue – consider using a provider of casual conferencing facilities (ie, through a ‘bureau' type arrangement) to test acceptability and encourage familiarity. Alternatively, consider leasing or hiring equipment.
- When considering the decision to purchase, input from your organisation's IT department (or an external IT expert if there is no suitable internal expertise available) is required from the beginning of the project. For example, the capacity and capability of the existing IT infrastructure will need to be examined and tested to ensure that running a video conferencing system will not adversely affect other key systems ( ie, email). If this is the case, investment in the infrastructure will be required prior to any conferencing equipment being purchased, and may be subject to a separate business case.
- For video conferencing to be effective, connection via ISDN or Voice Over IP (VOIP) is required to enable fast transmission speeds. (See the case study on Multipoint Desktop Video Conferencing11 which includes more detail on technical requirements).
- Video conferencing facilities can be used in three ways, therefore consult with key management/stakeholders to determine the best ‘fit for purpose':
- Point to point: Similar to a phone call, where two video conferencing systems are directly connected
- Point to Multi Point: A connection allowing one site (‘main') to link to other sites, enabling them to interact (eg, for training sessions). The ‘main' site must have a video conferencing unit with multipoint conferencing facilities built in
- Multi Point: Where more than two sites are able to take part in a conference and all parties are visible and able to interact. Most systems will have either a four-site or 12-site multi-connection unit built in.
- Consideration of other peripheral equipment early in the planning phase may potentially involve additional expenditure, but may bring future benefits (eg, increased flexibility). Such peripheral equipment might include:
- Data collaboration
- Video streaming and recording
- Peripheral equipment:
- Document camera to transmit documents or objects
- Whiteboard to transmit drawings
- PC to transmit files
- VCR to transmit video.
- Ensure that as part of the commissioning of the equipment, the supplier carries out connectivity and operational checks to/from all locations to be linked once the equipment is installed.
NB: Video conferencing equipment will be covered further in the Category Review for ICT equipment, to be published in late 2007.
Air travel
Staff of government departments are asked to examine the need and demand for workplace air travel within their organisations.
TARGET
Air Travel
Public Service departments are expected to:
- seek ways of reducing the amount of workplace air travel for incorporation into the travel plan (see "Travel Planning" earlier in the paper) and
- actively work with air travel providers on ways of reducing carbon emissions12.
Guidance
The following guidance notes have been developed to help government departments meet the targets for the Air Travel:
- Reduce the amount of workplace air travel by engaging in alternative "meeting methods", eg, video conferencing (see earlier section).
- Further information will be available on travel offsetting and reduction programmes in due course through the ‘Towards a Carbon Neutral Public Service'13 initiative.
- A carbon costing methodology and procurement policy to incorporate a price of carbon into procurement decisions will also be developed (as part of the Towards a Carbon Neutral Public Service initiative) in conjunction with the MfE and the Treasury. The cost of carbon proxy measure would be used as a procurement decision-making tool rather than reflecting an actual direct cost to be incurred.
Motor vehicles
Almost all vehicles on our roads are powered by fossil fuels – either petrol, diesel, or road fuel gases. About 80 per cent of the energy used in a car is simply lost, 19 per cent moves the vehicle, and only 1 per cent is used to carry the driver14.
This category review examines motor vehicles under the three pillars of sustainability – environmental (eg, reducing emissions), economic (eg, promoting vehicle maintenance) and social (eg, vehicle safety and behavioural aspects of the driver).
Safety ratings
MANDATORY STANDARD
Motor Vehicles – Safety Ratings
Public Service departments must (wherever practicable) purchase, lease or hire vehicles with a minimum safety standard rating of ANCAP 4 (or EuroNCAP 4)15, where ANCAP (or EuroNCAP) testing has been carried out for the vehicle model.
Exceptions
- Where there is a limited choice of ANCAP (or EuroNCAP) tested vehicles that achieve the 4-star standard (i.e. three or less vehicles); OR
- Where a vehicle model has not been tested under the ANCAP or EuroNCAP testing regime,
departments may make a selection based on the safety features of the vehicles under consideration.
If making a features-based selection, departments should consider the following in their safety features requirements (this is not an exhaustive list):
- Electronic stability control;
- Number of airbags (including side and curtain);
- Safety belt reminders;
- Three point seat belt for centre rear seat;
- Driver's knee impact zone.
Departments will need to make a selection based on information available16, their own procurement policy/ies, and operational requirements. Where further technical support and advice is required, departments are encouraged to ‘buy in' this expertise from the New Zealand Transport Agency.
IMPORTANT NOTE: Any vehicle's crash performance is more than the sum of its safety features. The only way to truly judge the effectiveness (in performance) of a vehicle's safety features is under crash-test conditions, such as the ANCAP or EuroNCAP testing regime.
TARGETS
Motor Vehicles – Safety Ratings
Public Service departments are expected to:
- consider vehicles with safety ratings higher than ANCAP 4 when available, for all vehicles purchased, leased or hired
- give priority consideration to vehicles fitted with an electronic stability control system (ESC) for delivery from 2008 when ESC is available and practicable for purpose (for all vehicles purchased, leased or hired)
- consider vehicles with additional safety features (eg, active seat belt reminders), for all vehicles purchased, leased or hired and
- develop a safe driving policy for all drivers engaged in driving vehicles that are purchased, leased or hired.
Guidance
The following guidance notes have been developed to help government departments meet the targets for safety ratings:
- Safety ratings are based on crash test results with ‘stars' being awarded for performance in both front offset, side and (in some cases) pole impact tests for occupant protection. The more stars in both tests, the better.
- An electronic stability control system uses sensors to detect a car going out of control (for example if the rear end slides out when turning a corner), brakes individual wheels, and reduces throttle to help bring the car back into control. Overseas analyses indicate these systems have a high rate of effectiveness in single-vehicle, loss-of-control type accidents and has the potential to save lives. An electronic stability control system can also be known by trade names, such as Electronic Stability Programme (ESP), Dynamic Stability Control (DSC) and Vehicle Stability Assist (VSA).
- See the following resources:
- The paper "Current Government Fleet and Procurement Practice" details a review of the government fleet carried out during 2005/06 by MfE and MoT. It gives further background information around the standards included in this document as well as case studies from various public sector organisations. In addition, MoT has recently completed a 2006/07 review of the government fleet and a summary and evaluation report will be published in the near future.
- The ANCAP crash test results on the Land Transport NZ website enables users to view and compare safety ratings of vehicles by selecting a make and model or vehicle type from a drop-down list
- Also on the MoT's SafeAs website, "New Vehicle Safety Feature Recommendations" contains further useful guidance on general safety items to consider when procuring new vehicles.
Reducing harmful emissions
Reducing emissions is an important part of improving air quality.
MANDATORY STANDARD
Motor Vehicles – Reducing harmful emissions
Public Service departments must:
- require tenderers to state the emissions standard for the vehicle(s) proposed in their responses to all tender exercises to purchase, lease or hire vehicles and
- purchase, lease or hire vehicles with a minimum emissions standard of at least Euro 4 (or equivalent)17.
TARGET
Motor Vehicles – Reducing harmful emissions
Public Service departments are expected to:
- consider vehicles with higher emissions standards when available18 for light and heavy duty vehicles purchased, leased or hired and delivered from the end of 2010
- remove older vehicles (ie, pre-Euro 4 or equivalent), which are likely to be high emitters, from departmental vehicle fleets that are owned or leased by 2010 or earlier, wherever possible.
Guidance
The following guidance notes have been developed to help government departments meet the targets for reducing harmful emissions:
- Emissions can be reduced through specifying ‘cleaner' vehicles when sourcing for purchase, lease or hire, and ensuring vehicles are maintained regularly (eg, replacement of air, oil and fuel filters), in accordance with the manufacturer's recommendations.
- The "Green Vehicle Guide" is an Australian Government website that enables users to view and compare the emissions of different vehicles by selecting from a drop-down list.
Fuel consumption
Targets for reduction in fuel consumption are to be included in the Travel Plan.
MANDATORY REQUIREMENT
Motor Vehicles – Fuel consumption
Public Service departments must:
- require that tenderers submit fuel economy information in their responses, and to include fuel economy as a criterion in tender evaluations for all new tender exercises for vehicles to be purchased, leased or hired.
TARGETS
Motor Vehicles – Fuel consumption
Public Service departments are expected to:
- actively reduce fuel consumption across the department's fleet of light motor vehicles (ie, cars, vans and small trucks), and highlight the methods to be used in the Travel Plan (eg, changing drivers' habits and behaviours) and
- incorporate in specifications the ‘point-of-sale' labelling information for fuel consumption for light vehicles, once it becomes available.
Guidance
The following guidance notes have been developed to help government departments meet the targets for fuel consumption:
1. Consider purchasing, leasing or hiring vehicles that have the best fuel economy but are fit for purpose. The MfE website contains data on sample figures along with ‘whole of life' costings.
2. The Land Transport NZ Fuel$aver website contains a calculator to help determine not only how much is spent on fuel, but how much could be saved. It uses a formula based on the make and model of car, distance travelled, type of fuel used, and driving habits.
3. EECA is developing a mandatory point-of-sale labelling scheme for all light vehicles (ie, cars, vans and small trucks) that may, in future, be used in specifications for vehicles. A star rating will be used to denote fuel consumption and display an annualised cost of fuel. The scheme is expected to come into force in early March 2008. When available, information on the scheme will be made available on the Land Transport NZ Fuel$aver website. EECA is currently consulting on this scheme and has published a discussion document.
Renewable fuels
The New Zealand Government has announced a biofuels sales obligation that will require fuel companies to start selling biofuels from 2008. The obligation will start on 1 April 2008 if the legislation is completed in sufficient time, although some fuel companies may start selling biofuels before this. For further information about the sales obligation, see the Ministry of Transport website.
By the time the Biofuels Sales Obligation commences, the government will introduce and monitor comprehensive specifications for the quality of biofuels and biofuel blends. See also the information below on the biofuel eco-label.
TARGETS
Motor Vehicles – Renewable fuels
Public Service departments are expected to:
- invite suppliers to include options for the use of renewable fuels in their responses to tender exercises for the purchase, lease or hire of vehicles. Renewable fuels include biofuels, electric, and road fuel gases
- consider in tender evaluations that, when available, all petrol-driven vehicles purchased, leased or hired are able to run on bio-ethanol-petrol blends of 10 per cent ethanol
- consider in tender evaluations that, when available, all diesel-driven vehicles purchased, leased or hired are able to run on low-level blends of bio-diesel
- consider, when available, electric vehicles that utilise renewable electricity
For passenger and light commercial vehicles only:
- specify longer life – and less polluting – synthetic and vegetable lubricating and hydraulic oils rather than mineral oil, whilst also ensuring these comply with the manufacturers' specification and recommendations.
Guidance
The following guidance notes have been developed to help government departments meet the targets for renewable fuels:
- EECA has produced fact sheets on bio ethanol blended petrol and bio diesel.
- When considering alternative, renewable fuel types, it is important to remember that vehicle maintenance and servicing periods will differ from ‘traditional' petrol and diesel-driven vehicles.
Vehicle maintenance
Vehicles must undergo regular maintenance to perform to the optimum level of efficiency in terms of usage and emissions, and remain cost effective.
MANDATORY REQUIREMENTS
Motor Vehicles – Vehicle maintenance
For fleet leased or hired, Public Service departments must:
- specify that suppliers must provide evidence that vehicles supplied are regularly maintained in accordance with the manufacturer's recommendations, with immediate effect.
- For all fleet vehicles, whether purchased, leased or hired Public Service departments must:
- specify that suppliers of contracted vehicle maintenance services are working to the standards contained in this document on tyre and used oil disposal, with immediate effect.
TARGETS
Motor Vehicles – Vehicle maintenance
For fleet purchases, Public Service departments are expected to:
- have a planned preventative maintenance programme in line with the manufacturer's recommendations and specifications19 for all vehicles in the fleet; and
- have a fully auditable maintenance record that includes a history of all work carried out and associated costs for all vehicles in the fleet.
Guidance
The following guidance notes have been developed to help government departments meet the targets for vehicle maintenance:
- Ensure that when tendering for vehicles, the cost of maintenance and servicing is quoted separately from the cost of the vehicle, especially if there is an existing separate contract for vehicle servicing. This enables an informed judgement to be made regarding where and how the vehicle is to be serviced (ie, as part of a manufacturer's warranty deal or under a separate vehicle servicing contract), and ensures that the maintenance and servicing costs are not counted twice.
- Specify the regular servicing of vehicles in accordance with the manufacturer's recommendations and specifications, and the use of the correct fuel and lubricants to ensure emission control systems remain effective. Specify also that all vehicles are regularly tested using gas analysis equipment, to check they are running at optimum efficiency.
Eco-labelling
TARGET
Motor Vehicles – Eco-labelling
Public Service departments are expected to:
- ensure that as, and when, motor vehicle eco-labelling is ratified, it is included in tender specifications and evaluations, and contract documents.
Guidance
The following guidance notes have been developed to help government departments meet the target for motor vehicle eco-labelling:
- The government has approved the implementation of a mandatory 'Vehicle Fuel Economy Labelling' scheme with the aim of having it in the market by the end of 2007. It will cover new and used vehicles where information is available.
- EECA has produced a ‘biofuel' label (see right) to indicate that the fuel being sold meets quality specifications. The label can only be used by retailers and suppliers that meet the specifications. It is important to use biofuel blends of the correct quality to avoid engine problems.
- Land Transport NZ is preparing a suite of sustainability ratings which will bring together information into one tool. This tool will inform choices in terms of safety, low emissions, ‘end-of-life' considerations and fuel efficiency (using EECA's ratings – see above). Although these ratings will not be mandatory, it will be considered good practice to incorporate them into tender specifications.
End-of-life considerations – recycling and recovery
Guidance
The following guidance notes have been developed to help government departments meet the standards and target for end-of-life considerations:
- ‘Tyre Track' is an initiative by the Motor Trade Association (MTA). MTA's website includes a list of registered collectors (by location) who have undertaken to manage the disposal of old tyres responsibly. MfE and the industry are currently investigating the potential to extend Tyre Track to take more responsibility for end-of-life tyre reuse and recycling (referred to as ‘product stewardship').
- MfE is currently working towards the enhancement of the used oil recovery programme. Pending the issue of that document, the options for disposal of used oil are described in the MfE document "Used Oil Recovery Reuse and Disposal in New Zealand – Issues and Options"
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